TIDMCEY
RNS Number : 2679K
Centamin PLC
21 April 2020
21 April 2020
Centamin plc
("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
Quarterly Report and Dividend Declaration
for the three months ended 31 March 2020
HIGHLIGHTS[1]
-- Centamin took early action to protect the health, safety and
wellbeing of our employees and communities in response to the
global threat of coronavirus ("COVID-19") and, in what remains an
uncertain environment, we believe we have taken steps to manage the
issues that are within the Company's control
-- As of 20 April, there were no recorded cases of COVID-19
on-site and there have been no material disruptions to operations,
supply chain or gold shipments, and contingency plans are in place
to deal with various possible disruptions
-- Group lost time injury frequency rate ("LTIFR") of 0.31 per
200,000 workplace hours for the three months to 31 March 2020
("Q1") with a continued target of achieving a zero-harm
workplace
-- Gold production[2] of 125,090 ounces from the Sukari Gold
Mine ("Sukari") for Q1, in line with annual guidance
-- Solid financial performance with gross revenue for Q1 of
US$222.2 million, generated from 139,784 ounces in gold sales at an
average realised price of US$1,587 per ounce
-- Cash costs for Q1 of US$659 per ounce produced and all-in
sustaining costs ("AISC") of US$902 per ounce sold, both of which
are in line with annual guidance
-- Martin Horgan was appointed as new Chief Executive Officer
("CEO") with effect from 6 April 2020 with Ross Jerrard continuing
as Chief Financial Officer ("CFO")
-- The Board declares a 2020 first interim dividend of 6 US
cents per share (US$69.4 million) with a payment date of 15 May
2020[3], directly replacing the previously proposed 2019 final
dividend (6 US cents per share) to provide shareholders with
certainty and to expedite the payment
-- The Company reported a strong balance sheet with cash and
liquid assets ([4]) of US$379.2 million, as at 31 March 2020, an
increase of US$30 million since 31 December 2019 and before the
2020 first interim dividend. The Company has no debt and no
hedging
OUTLOOK
-- The impact and potential duration of the COVID-19 pandemic
remains uncertain. The Company has undertaken risk analysis
scenarios and has put in place contingency plans for the business
and believes it has taken prudent steps to continue to navigate
these difficult times. Centamin is closely monitoring the
situation, with an active response framework in place to manage and
mitigate future impacts within its control
-- Sukari operations have been uninterrupted with sufficient
staffing resources and critical supplies for Q2, during which it is
expected global travel restrictions may begin to ease. Should such
restrictions be extended into H2, it is possible that operations
may be affected
-- Centamin maintains its 2020 full year guidance, targeting
production between 510,000-540,000 ounces of gold (production
weighted to 55% to H2), at cash costs between US$630-680 per ounce
produced and AISC between US$870-920 per ounce sold
-- Open pit material to contribute 80% of the full year
production driven by higher grade Stage 4 ore. The balance is
scheduled to come from the underground, specifically Ptah as the
focus within Amun is infrastructure upgrades
-- Q2 2020 is scheduled to be a lower production quarter,
producing approximately 115,000 ounces of gold, reflecting a
reduction in underground output
-- As a precautionary move to protect the health and wellbeing
of the workforce, non-essential capital expenditure has been
temporarily deferred, including the Sukari solar plant. This is in
order to minimise contractors and other non-operating traffic on
and off site, while restrictions related to COVID-19 remain in
place. As a result, 2020 capital expenditure is expected to be in
the range of US$150-US$170 million (previously US$190 million)
-- The Sukari life of asset review is ongoing. A series of
independent optimisation studies across each section of the mine
are underway, with results expected throughout 2020, identifying
areas of improvement
-- Full year financial results for the twelve months ended 31
December 2019, will be published in mid- May 2020
ROSS JERRARD, CFO, commented : "The first quarter was a strong
start to the year with operational and financial performance
delivered ahead of plan. The commitment and response by our
workforce to the COVID-19 pandemic has been exceptional, and we
would also like to acknowledge the assistance and support of the
Egyptian government.
Our top priority is to safeguard the health and wellbeing of our
people, while taking necessary action to protect our business.
Centamin has and will continue to implement proactive measures to
minimise the impact to our people, business, community and wider
stakeholders.
Centamin is a resilient and responsibly run business with zero
debt and US$379.2 million in cash and liquid assets, as at 31 March
2020. I am confident in our long-term strategy and our ability to
respond quickly in this difficult environment. We continue to
operate diligently and invest prudently, and I believe Centamin is
both well equipped to navigate these challenges and remains well
positioned for the future.
It was an honour to act as interim CEO and it is a great
pleasure to welcome Martin Horgan as Centamin's new CEO. I look
forward to working closely with Martin to deliver value to all our
stakeholders through the implementation of our long-term
strategy."
GROUP PRODUCTION SUMMARY
Quarter on quarter comparative Year on year comparative
------------------------- ------------------ ----------------------------------- ----------------------------
units Q1 2020 Q4 2019 % change Q1 2019 % change
-------------------------- ------------------ ------------- --------- --------- ----------------- ---------
Open pit
Total material mined kt 20,501 17,385 18% 20,987 (2%)
Ore mined kt 4,176 4,006 4% 3,126 34%
Ore grade mined g/t Au 1.11 0.98 13% 0.73 54%
Ore grade milled g/t Au 1.32 1.19 11% 0.83 59%
-------------------------- ------------------ ------------- --------- --------- ----------------- ---------
Underground
Ore mined kt 154 232 (34%) 270 (43%)
Ore grade mined g/t Au 4.98 6.45 (23%) 6.34 (21%)
-------------------------- ------------------ ------------- --------- --------- ----------------- ---------
Processing
Ore processed kt 3,077 3,044 1% 3,248 (5%)
Feed grade g/t Au 1.50 1.60 (6%) 1.28 17%
Gold recovery % 87.5 89.5 (2%) 88.8 (1%)
-------------------------- ------------------ ------------- --------- --------- ----------------- ---------
Gold production oz 125,090 148,387 (16%) 116,183 8%
Gold sold oz 139,784 137,065 2% 111,365 26%
-------------------------- ------------------ ------------- --------- --------- ----------------- ---------
Cash costs US$'000 produced 82,417 89,676 (8%) 71,892 15%
AISC US$'000 sold 126,089 108,333 16% 98,041 29%
Unit cash costs US$/oz produced 659 605 9% 631 4%
Unit AISC US$/oz sold 902 792 14% 898 0%
-------------------------- ------------------ ------------- --------- --------- ----------------- ---------
Avg realised gold price US$/oz 1,587 1,487 7% 1,303 22%
CONFERENCE CALL AND WEBCAST
The Company will be hosting a webcast and conference call today,
Tuesday, 21 April at 12.30 BST (UK time) to discuss the results
with investors and analysts, followed by an opportunity to ask
questions.
Please find below the required participation details for the
call:
Webcast link :
https://www.investis-live.com/centamin/5e81e20004c15c7b00123f2a/bfeh
Conference call
Dial-in telephone numbers:
United Kingdom +44 (0) 203 936 2999
United States +1 646 664 1960
South Africa +27 (0)87 550 8441
All other locations +44 (0) 203 936 2999
Participation access code: 611095
A replay will be made available on the Company website by the
close of business today.
FOR MORE INFORMATION please visit the website www.centamin.com
or contact:
Centamin plc Buchanan
Alexandra Carse, Investor Relations Bobby Morse
+44 (0) 7700 713 738 Chris Judd
alexandra.carse@centamin.je Kelsey Traynor
+ 44 (0) 20 7466 5000
centamin@buchanan.uk.com
________________________________________________________________________________________________
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REVIEW
COVID-19
Thus far in 2020, COVID-19 has significantly impacted the world,
presenting an unprecedented medical, economic and social challenge.
Centamin has been proactive in how it manages and mitigates the
impacts within its control. As of 20 April 2020, Centamin has no
recorded cases of COVID-19 on-site and has experienced no material
disruption to operations, supply chain or gold shipments. The
Company has, however, put in place contingency plans to deal with
various possible disruption in the coming months.
At the centre of any decision is the health, safety and
wellbeing of our employees and communities. Early action was taken
at Sukari, in line with our Severe Communicable Disease Outbreak
Management Plan and in accordance with the advice of governments
and health authorities
-- Established a robust multi-functional response framework with a clear chain of command
-- Proactive engagement with the Egyptian Government, Health
Authorities and the City of Marsa Alam
-- Cease non-essential travel
-- Extended on-site roster cycles supported by clear fatigue management protocols
-- Enable employees to work from home where possible
-- Educate the workforce on the virus (symptoms and preventative measures)
-- Cease non-essential visitors and stringent controls in place for essential visitors
-- Establish multiple mandatory checkpoints (Marsa Alam airport,
community centre and mine gate) for possible symptoms and travel
history screening for all visitors
-- Quarantine requirements for any individuals accessing site
with rigid hospital isolation protocols in place for any suspected
infected persons
-- Ongoing supply chain assessment and reviews to ensure the
site can operate for an extended period of time
Measures are in place to ensure Centamin's workforce follow the
advice of local governments and health authorities in the countries
in which they are located.
The Company has carried out scenario risk analysis on the
business and the Company believes it is well positioned to continue
to manage through these difficult times. As the pandemic progresses
we will continue to monitor the global situation - closely within
our host countries Egypt, Côte d'Ivoire, Burkina Faso, the United
Kingdom and Jersey - adapting our policies, procedures and controls
to minimise the impacts that are within the control of our
business.
Governance
The annual general meeting ("AGM") will be held by the end of
June 2020, taking into consideration the latest available
government guidelines on convening shareholder meetings during this
pandemic. The Notice of AGM and supplementary information will
include important information ensuring a safe AGM compliant with
government guidance. The precise date is to be confirmed as soon as
practicable.
Board and management changes during the quarter represented
further steps in reshaping and strengthening the Company's
leadership team to deliver sustainable stakeholder returns. These
include:
-- The appointment of Martin Horgan as CEO, effective 6 April
2020. Martin is a qualified mining engineer with 25-years'
experience in multiple areas of the mining industry. In his career
he has shown a strong strategic and operating acumen as well as
demonstrating a longstanding commitment to environmental and social
responsibility within mining, which is central to Centamin's
decision-making and corporate strategy
-- Interim CEO, Ross Jerrard, will work alongside Martin in his
role as Executive Director and CFO
-- The Board will work closely with Martin to ensure a smooth
transition and collectively agree a plan to further strengthen the
business and deliver on the opportunities for growth that lie
ahead
Over the past 18 months substantial work has gone into
restructuring the Group organisational chart, developing robust
chains of command, to ensure timely and effective decision making.
This has involved flattening the operating structure, expanding
departments and simplifying reporting lines. The changes set out
below have meant Centamin is better equipped to respond to
challenges, such as those posed by COVID-19:
-- Established a COVID-19 Executive Committee to provide
oversight during the pandemic, supported by multifunctional teams
and a framework led by Risk and Operations. At a minimum, the Board
are updated weekly, the Executive Committee meets three times a
week and the support team meet daily, providing workforce updates
and supply chain assessment
-- The General Manager of Sukari reports directly to the CEO,
with Jeremy Langford resigning from his position as Chief Operating
Officer to pursue other interests
-- The Company continues to strengthen operational competencies
across the Group through development and recruitment including the
appointment of a Group Project Developer and Head of Risk
Management.
Social and Economic Contribution
Centamin's mining operations, including exploration projects,
generate economic benefit for the countries and communities where
we operate through payments to government, employee and contractor
wages, payments to suppliers and contractors, vocational training,
community investment and academic investment.
Foreign Direct Investment
Centamin is working with its stakeholders to identify the
immediate needs to mitigate the impact of the COVID-19 pandemic,
and providing financial and logistical support to help our local
communities:
-- Commitment of LE10 million[5] (equating to approximately
US$635,000) to the Egyptian COVID-19 relief efforts
-- Logistical support to the local community of Marsa Alam,
including personal protection equipment and sanitation supplies
In Q1, the Egyptian government earned US$6.7 million[6] in
royalty payments and as per the terms of the Concession
Agreement[7], Sukari's operational performance resulted in profit
share payments of US$42.5 million to our partners, the Egyptian
Mineral Resource Authority ("EMRA").
Community Project
In Côte d'Ivoire, the Company's partnership with GIZ, the German
Corporation for International Cooperation for Development, has made
positive strides during the quarter. The project initiative is
focussed on establishing a reliable and sustainable supply of rice
to the population within the Bounkani region, host to the Doropo
Project. Rice production in this region has been impacted by crop
diseases as a result of substandard farming practises. During Q1,
the project supplied farm training, quality fertilisers and
commenced a regional five bore hole rehabilitation programme.
Health and Safety
The safety of our people is always our highest priority. We have
stringent safety protocols across all sites, including clear
operating standards on workplace conduct. In response to COVID-19
additional safety measures have been implemented, including social
distancing, strict hygiene protocols, mandatory isolation for
inbound employees and clear procedures in the event of a suspected
infection. The compliance and commitment of our workforce has been
outstanding.
Safely managing the mobility of our workforce, in line with
government and public health advice, has been paramount in
mitigating the risk of spreading the virus. Government imposed
travel restrictions on the movement of people are expected to ease
in the coming months. Until timing of those changes are fully
understood and global mobility stabilises the Company have
identified alternative measures for varying scenarios.
In March, an optimised staffing plan was introduced, supported
by enhanced fatigue management processes focusing on physical and
mental health. This includes extended roster cycles, revised daily
shift patterns, where required, and established on-site rest
camps.
During Q1, unfortunately there were three Lost Time Injuries
("LTI") reported, two soft tissue injuries sustained in Côte
d'Ivoire and a fracture from twisting an ankle at Sukari. The Group
LTIFR for Q1 was 0.31 per 200,000 workplace hours. As of 20 April
2020, Centamin had no recorded cases of COVID-19 at its operating
sites.
The focus remains on reducing the number of injuries and
incidents with the objective of zero harm.
Environmental
Water Management
Centamin is committed to improving water management. In line
with industry water efficiency standards and we have changed our
water conservation targets to focus on total reused water to task
("TRW"). This volumetric target is set at 15 million litres per day
for 2020, equating to 1.4 billion litres per quarter. This
represents a 25% improvement on the prior three-year average.
In Q1, TRW was 853 million litres, below the annualised target.
System and infrastructure upgrades expected to considerably improve
site water use efficiency, commenced in Q1, including the
construction of a new process water pond which is expected to be
completed in May.
Tailings Storage Facility ("TSF")
Centamin is committed to the highest standards of tailings
management. The TSF is regularly reviewed according to regulatory
and internal requirements, including routine monitoring of wells
and boreholes for seepage. The Sukari Geotechnical department
conducts internal and external technical reviews of the TSF on a
regular basis, as well as being inspected by independent
consultants.
The Company's current downstream TSF ("TSF1") will reach
capacity in 2021. Construction of a second downstream TSF ("TSF2")
commenced in 2020, which will extend tailings deposition beyond
2030. As an essential project, US$23 million of non-sustaining
project capital is budgeted in 2020. During Q1, construction of
TSF2 progressed on schedule.
OPERATIONAL REVIEW
Q1 2020 vs Q1 2019
Sukari Gold Mine, Egypt
Production
Gold production was 125,090 ounces for the quarter, an 8%
improvement compared to the corresponding quarter in 2019 ("YoY")
and no material supply chain impacts from COVID-19 were experienced
in the quarter.
Supply Chain
As with many countries globally, Egypt has temporarily closed
the national borders to commercial air travel until further notice.
The ports and air freight borders remain open for importing and
exporting goods. Understandably, supply chain logistics have been
impacted by the global government imposed travel restrictions on
the movement of goods. Increased logistical planning and
flexibility has been crucial in mitigating these impacts.
The domestic supply chain has not been materially impacted,
allowing for transportation of domestic goods in compliance with
State curfews. International essential supplies are sufficiently
stocked for Q2. As a precautionary measure, successful efforts have
been made to further identify and, or increase the stores of
essential supplies. However, if travel restrictions are extended
into H2 and/or critical supply disruptions arise, operations could
be affected.
Daily supply chain assessment is conducted, monitoring stock and
usage levels, maintaining a risk schedule of our current and
prospective suppliers, and supported by continuous open dialogue
with our key international and domestic suppliers. Where a
potential risk to a supplier has been flagged, and with all
essential supplies, precautionary measures have been taken to
identify alternative potential supply channels.
Costs
Absolute costs and unit costs were better than budgeted.
Absolute cash costs of production of US$82.4 million, a 15%
increase YoY, mainly due to decreasing mining inventories [8] over
the quarter. Unit cash costs of production of US$659 per ounce
produced, a 4% increase YoY.
The Company forecasts additional costs and cash outflow
associated with COVID-19 to come through in Q2, including a
build-up in working capital through increasing stockpiles and
consumables, temporarily increased payroll costs and support costs
resulting from logistics planning, including quarantines, increased
sterilisation measures and transportation costs due to government
curfews. These cost pressures are not expected to be material and
therefore are not expected to affect guidance. W e continue to
actively manage our cost base to mitigate any future impacts from
COVID-19.
Absolute AISC of gold sold was US$126.1 million, a 29% increase
YoY, driven by increased cost of sales and increased underground
sustaining capital. However, unit AISC per ounce sold were US$902,
in line YoY due to increased sales.
Open Pit Mining
Total material mined was 20.5Mt, a 2% reduction YoY. Total ore
mined was 4.2Mt at an average grade of 1.11g/t, a 34% increase in
tonnes YoY and a 54% improvement in grade YoY predominantly driven
by mining in the higher-grade Stage 4 West and positive
reconciliation was achieved on ore tonnes greater than 0.4g/t. The
short term mine plan was updated during the quarter to maintain
efficient mining operations and support the annual production
guidance while maintaining the planned waste stripping volumes.
The open pit delivered 2.9Mt of ore to the mill, at an average
milled grade of 1.32g/t, and 297kt to the dump leach pads, at an
average grade of 0.38g/t. In Q1, stockpiles increased from 13.9Mt
at 0.46g/t to 14.8Mt at an average grade of 0.48g/t.
In 2020, the open pit is scheduled to contribute 80% of the full
year ounces. In assessing the potential risk from COVID-19 on
operations, the open pit is robust, benefiting from being
owner-operated, with a strong open pit equipment availability and
productivity, sufficient supplies and a skilled workforce,
sufficient for multiple rosters.
Underground Mining
Underground mining in the quarter focussed in Ptah. Mined grade
was 27% ahead of budget driven by higher stoping grade delivered in
the quarter due to improved contractor management and dilution
controls, including the use of cement rock fill to backfill in
areas. Total underground tonnes mined was c. 20% less than
scheduled due to restricted stope access in Ptah.
Total ore mined was 154kt at an average total grade of 4.98g/t.
This represented a 43% decrease in tonnes YoY and a 21% decrease in
grade YoY, predominantly as a function of the mine plan.
-- Ore mined from stoping was 82kt at 7.43g/t, which was a 51%
decrease in tonnes YoY and a 9% reduction in grade YoY.
-- Ore mined from development was 72kt at an average grade of
2.16g/t. This was a 30% reduction in tonnes and a 34% reduction in
grade YoY, as the plan scheduled more waste development in the
quarter .
Material underground infrastructure upgrades are scheduled for
2020, including the extension of the ventilation circuit.
In 2020, the underground is scheduled to contribute c.20% of the
full year ounces. As opposed to the open pit, the underground
operations are contractor-mined. We continue to work closely with
the contractors and consultants in assessing potential future
impacts from COVID-19, in particular from government imposed travel
restrictions on the movement of people to mitigate disruptions to
operations.
Processin g
The plant processed 3.1Mt of ore, a 5% decrease YoY, at a higher
average feed grade of 1.5g/t, a 17% improvement YoY. The plant
utilisation was 96%.
Metallurgical recovery rates of 87.5%, 1% down YoY. Processing
costs per tonne were reduced 11% YoY.
Dump leach operations contributed 1,415 ounces.
The focus in 2020 continues to be on optimising plant
throughput, with an emphasis on reducing reagent consumption while
maintaining recoveries.
FINANCIAL POSITION (Unaudited)
Balance Sheet
Centamin is committed to its policy of being 100% exposed to the
gold price through an unhedged position and no debt. The Company is
in a solid financial position, building cash and liquid assets to
US$379.2 million, as at 31 March 2020, before distribution of the
2020 first interim dividend totalling US$69.4 million, to be paid
on 15 May 2020.
Gold Sales
Gold sold of 139,784 ounces, a 26% improvement YoY, reflecting
the higher production and increased gold inventory at year-end. The
average realised price of gold was US$1,587 per ounce, in line with
the average market price of US$1,583 per ounce and a 22%
improvement YoY. Gross revenue for the quarter was US$222.2
million, an 8% improvement YoY.
During the quarter, there were no material disruptions in gold
shipments to our longstanding refiner, Asahi Refining Canada.
Regular dialogue is maintained with both Asahi and Brinks, our
security logistics company, whom take responsibility for the gold
at the mine gate.
Comprehensive scenario assessment continues, with precautionary
measures in place, including utilising alternative refiners, Brinks
stockpiling gold shipments and Centamin stockpiling gold produced.
Each scenario involves variable short-term costs implications.
Free Cash Flow
Net cash generated from operating activities was US$110.5
million, an 88% improvement YoY. After Sukari profit share
distribution and Group investing activities, group free cash flow
was US$45.6 million, a 175% improvement YoY, driven by increased
sales and gold price.
Under the terms of the Concession Agreement ("Agreement") with
our Egyptian partners, EMRA, on 1 July 2020, the profit share
mechanism changes to 50:50 and will remain at this level for the
remainder of the Agreement.
Capital Allocation
Cost mitigation and cash management are fundamental to
Centamin's strategy and critical to mitigating the impacts of
COVID-19. The Company is reducing capital expenditure for 2020 to
between US$150-US$170 million (previously US$190million), through
short term deferral of non-essential growth capital, optimisation
of capital projects and reductions in discretionary spend. Changes
to the non-essential capital expenditure programmes are measures
taken to protect our workforce and secure the operations, and not
expected to impact guidance for 2020.
Group Capital Expenditure
As a mitigating measure to protect the Company's onsite
workforce, the Company have postponed non-essential projects
requiring mobilisation of third-party project teams, such as the
Sukari solar plant project and exceptional regional exploration
activities. Project optimisations have been identified in areas
such as mill relining and upgrades to the underground ventilation
circuit, utilising existing onsite equipment and our highly skilled
workforce as opposed to using third parties.
In Q1, sustaining capital expenditure was US$20.2 million and
non-sustaining expenditure was US$1.7 million.
Table 2. Q1 Group Capitalised Expenditure Breakdown
Q1 2020 Q4 2019 Q1 2019
US$'000 US$'000 US$'000
----------------------------------------------- -------- -------- --------
Sukari underground exploration 2,766 2,177 1,612
Sukari underground mine development 8,063 9,011 9,004
Other Sukari sustaining capital expenditure 9,413 9,071 12,025
------------------------------------------------ -------- -------- --------
Total sustaining capital expenditure 20,242 20,259 22,641
------------------------------------------------ -------- -------- --------
Non-sustaining Sukari exploration capitalised 84 2,103 2,585
Other non-sustaining capital expenditure 1,609 3,779 -
------------------------------------------------ -------- -------- --------
Total capital expenditure 21,935 26,141 25,226
------------------------------------------------ -------- -------- --------
In Q1, US$2.9 million was invested in advancing surface
exploration within the Sukari tenement. A total of US$4.0 million
was expensed in exploration at the Company's West African assets,
predominantly at the Doropo Project in Côte d'Ivoire.
Table 3. Q1 Group Exploration Expenditure Breakdown
Q1 2020 Q4 2019 Q1 2019
US$'000 US$'000 US$'000
------------------------------- -------- -------- --------
Egypt 2,850 4,280 4,197
Burkina Faso 310 439 1,230
Côte d'Ivoire 3,687 2,148 3,325
Total exploration expenditure 6,847 6,867 8,752
-------------------------------- -------- -------- --------
First Interim Dividend
Given the unprecedented global situation with COVID-19,
regulators, governments and public health authorities have issued
varying directives which have impacted the timing and structure of
annual general meetings (AGM"). As such the opportunity for
shareholders to approve the proposed 2019 final dividend cannot go
ahead with the previously announced timetable.
After much consideration, and in order to ensure the dividend
payment can be made to shareholders in May 2020, the Board have
resolved to declare a 2020 first interim dividend to replace the
2019 final dividend. The 2020 first interim is for 6 US cents per
share (US$64.9 million), the same quantum as the previously
proposed 2019 final dividend (announced on 14 January 2020), and
will not be subject to shareholder approval.
The Board acknowledge the importance of the governance
framework, which allows shareholders to exercise their voting right
to approve a final dividend. And since introducing the Centamin
dividend policy, the final dividend has received in excess of 99%
of votes in favour.
The Company's obligations as a dual listed company on the London
Stock Exchange (LSE) and Toronto Stock Exchange (TSX) were
thoroughly considered and declaring a 2020 first interim to replace
the previously proposed 2019 final dividend was considered the best
option for shareholders. This is an exceptional circumstance and
will not impact future dividend distributions, in line with the
Company's dividend policy.
In accordance with the listing rules, below is the new and
revised accelerated dividend timetable.
London Stock Exchange and Toronto Stock Exchange
Ex-Dividend Date: 30 April 2020
Record Date: 1 May 2020
Last Date for Currency Elections: 4 May 2020
Payment Date: 15 May 2020
EXPLORATION REVIEW
S ukari Gold Mine, Egypt
The Sukari porphyry continues to return excellent results that
show mineralization remains open at depth and along strike and the
high-grade structures within the porphyry are not fully
defined.
A total of 12,417 metres of underground diamond drilling was
completed in Q1, with an average cost of US$157 per metre. Drilling
was focused on resource conversion within Ptah East and West
Stockworks, Osiris South, Top of Horus North and step-out
exploration drilling targeting the Horus Deeps structures.
A 2D seismic interpretation was completed in Q1 which assisted
in defining the major setting architecture components of the Sukari
tenement and directing the selection of the area of coverage of the
3D Block.
Amun / Ptah Production Decline
Exploration within the existing underground operations was
predominantly focussed on infill resource drilling and category
conversion to Measured and Indicated to support short-medium term
mine planning and development design. Drilling from the Ptah 635mRL
and 615mRL focused on medium-term underground development designs
along the east and west porphyry contacts and within the
undeveloped Porphyry-Keel.
Horus Deeps
In Q1, near-mine surface drilling commenced targeting Horus
Deeps extensions up plunge to the south and down-plunge to the
north. Two deep holes, 850m depth (south) and north 1400m depth
(north) are in progress and calibrating well with known porphyry
contacts. The results of these are expected to improve the
understanding of the mineralisation structural controls.
Cleopatra ("North") Decline
In Q1, 3,625 metres of diamond drill core were logged and
sampled from the North decline, targeting reserve and resource
growth on the Stage 7 open pit-underground interface. The open pit
optimisation study is underway assessing the parameters around
optimal extraction of the Cleopatra zone and subsequent North
decline development plans to access deeper structures and
resources.
Sukari Regional Exploration
Reduced fieldwork continued regionally including five holes
drilled at Quartz Ridge for metallurgical testing. Good surface
samples anomalies were found on the V-Shear prospect, with
follow-up geological mapping and modelling scheduled.
West Africa Exploration
During Q1, exploration activities safely ramped up at the Doropo
Project and ABC Project in Côte d'Ivoire. A second multi-purpose
drill rig was brought in on the Doropo Project in line with the
increased surface exploration programme.
There have been no recorded cases of COVID-19 within a 100km
radius of our licenses. Drilling and exploration field work has
continued uninterrupted in Q1 but is expected to be reduced in Q2,
as government imposed restrictions on the movement of goods and
people impact activities. Double shifts have been implemented on
the drill rigs at Doropo, however disruptions experienced with
receiving drilling consumables could impact Q2 drilling.
Alternatives are being assessed. The Doropo and ABC geophysics
programmes have been temporarily postponed.
Employees based in the Abidjan office are working from home in
line with the government guidance.
Forward-looking Statements
This announcement (including information incorporated by
reference) contains "forward-looking statements" and
"forward-looking information" under applicable securities laws
(collectively, "forward-looking statements"), including statements
with respect to future financial or operating performance.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "believes",
"expects", "expected", "budgeted", "forecasts" and "anticipates".
Although Centamin believes that the expectations reflected in such
forward-looking statements are reasonable, Centamin can give no
assurance that such expectations will prove to be correct.
Forward-looking statements are prospective in nature and are not
based on historical facts, but rather on current expectations and
projections of the management of Centamin about future events and
are therefore subject to known and unknown risks and uncertainties
which could cause actual results to differ materially from the
future results expressed or implied by the forward-looking
statements. In addition, there are a number of factors that could
cause actual results, performance, achievements or developments to
differ materially from those expressed or implied by such
forward-looking statements; general business, economic,
competitive, political and social uncertainties; the results of
exploration activities and feasibility studies; assumptions in
economic evaluations which prove to be inaccurate; currency
fluctuations; changes in project parameters; future prices of gold
and other metals; possible variations of ore grade or recovery
rates; accidents, labour disputes and other risks of the mining
industry; climatic conditions; political instability; decisions and
regulatory changes enacted by governmental authorities; delays in
obtaining approvals or financing or completing development or
construction activities; and discovery of archaeological ruins.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such information or
statements. Forward-looking statements contained herein are made as
of the date of this announcement and the Company disclaims any
obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise.
Accordingly, readers should not place undue reliance on
forward-looking statements.
[1] Cash cost of production, AISC, and cash, bullion on hand,
gold sales receivables, and free cash flow are non-GAAP measures,
referenced in 2018 Audited Annual Report and Accounts.
[2] Gold produced is gold poured and does not include
gold-in-circuit at period end
[3] Please find 2020 first interim dividend timetable within the
Financial Position section of this document, and on the Company
website www.centamin.com
[4] Cash and cash equivalents, bullion on hand, gold sales
receivables and financial assets at fair value through profit or
loss.
[5] As announced on 6 April 2020
[6] Accrued royalties are paid every six months in arrears
[7] The royalty due to the Government under Article III (1)
shall not be recoverable and shall be paid in cash by Operating
Company to a bank designated by EGSMA within thirty (30) days after
the end of each calendar half, or at such earlier time as may be
agreed upon, (2)an amount equal to three percent (3) of Sale
Revenue during such calendar half.
[8] Mining inventories are defined as mine ROM stockpiles,
crushed ore stockpiles, gold in circuit, dump leach and gold in
safe.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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April 21, 2020 02:00 ET (06:00 GMT)
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